The Difference Between Appraisal and Inspection

An appraisal is an evaluation of a property’s market value conducted by a licensed appraiser. Its primary purpose is to provide lenders with an unbiased estimate of the home’s worth to ensure the loan amount aligns with the property’s value.

Key aspects of an appraisal:

• Purpose: Determines the home’s fair market value.

• Who Conducts It: A licensed appraiser hired by the lender.

• Focus: Examines the property’s size, location, condition, and comparable sales in the area.

• Outcome: A report that lenders use to decide whether to approve a loan.

For buyers in Carolina Colours, appraisals help ensure you’re not overpaying for your new home, providing confidence in your investment.

A home inspection is a comprehensive assessment of the home’s condition, focusing on potential issues that could affect its safety, functionality, or value. Unlike an appraisal, an inspection is optional but highly recommended.

Key aspects of a home inspection:

• Purpose: Identifies potential problems with the property.

• Who Conducts It: A certified home inspector hired by the buyer.

• Focus: Examines structural elements, roofing, electrical systems, plumbing, HVAC, and more.

• Outcome: A detailed report highlighting existing or potential issues and suggested repairs.

Inspections give buyers peace of mind, helping them understand the true condition of the home and negotiate repairs or price adjustments if necessary.